Flexibility in respect to capital structure will depend on numerous factors which are often considered by management in setting an appropriate capital structure for the firm. Capital structure decisions are made by management but are also influenced by external parties such as banks. Which of the following statements is more likely to be false? a. Companies with assets that are more suitable to act as security, such as property assets, are able to use a greater level of debt within their capital structures b. A company with low business risk will be able to increase its level of financial leverage thereby balancing a lower level of business risk with a higher level of financial risk c. Rating agencies will change a companys credit rating if a company significantly increases its level of debt relative to equity within its capital structure d. Due to managerial conservatism, management may promote the lower use of debt in order to protect their jobs (unless remuneration includes significant share options) as compared to shareholders who tend to be well diversified and can sustain a higher probability of financial distress e. High growth companies with high business risk will employ more debt within their capital structures